¶ … Marketing would examine each of the four brand development strategies for developing three new products to add to my brand. The first I would look at is brand extension, one of the most common means to build more business. This would leverage the power of my existing brand by using it on new products. The further these new products get from the existing product, the less effective this strategy is, so I would extend into bike accessories.
Another strategy I would use is line extension. In doing this, I would add a second brand to my offerings. Line extension leverages existing production technologies and distribution channels to help build a new line. The new line will hopefully win new market share without cannibalizing the original brand. This would mean to launch a new line of bicycles in the same market.
A variety of line extension would be to create a new line, but in a new market. This negates the risk of cannibalization and is often used to reposition a company towards growth markets when their core market begins to mature. Nike's move into casual wear with their Cole Haan label is a good example. For me, this could mean starting a road bike line.
The last strategy I could employ would be to develop a technological shift in order to create a new product for my existing bike line. This requires R&D investment, but could result in significant first-mover advantages that increase market share and build competitive advantage. This would mean devising a new technology or design that could be incorporated into my off-road bikes.
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